Tesla China’s official website showed on Thursday that the basic price of its Model Y rear-wheel drive electric vehicle was raised by 15,060 yuan ($2,373) to reach a total of 316,900 yuan ($49,921).
In the previous week, Tesla has announced price increases twice. On March 10, it implemented a price adjustment for its Model 3 Performance version and Model Y Long Range and Performance versions – the prices were all raised by 10,000 yuan. Then, on March 15, Tesla China announced that the prices of four domestic Tesla models were raised, with an increase ranging from 14,200 yuan to 20,000 yuan.
On March 16, it was reported that Tesla would suspend production at its Shanghai Gigafactory for two days (March 16-17), as the firm’s suppliers and employees received notice on Wednesday. Tesla responded on Thursday that it actively cooperated with the government’s requirements for nucleic acid testing for COVID-19 and other pandemic prevention requirements, and tried its best to ensure production and overcome difficulties.
According to public information, Tesla’s Shanghai Gigafactory started construction on January 7, 2019. In October of the same year, it obtained production qualification and began to produce Model 3s. On December 30, 2019, the domestic Model 3 was delivered to employee car owners at the Shanghai Gigafactory. It is the first wholly foreign-owned vehicle manufacturing project in China, and Tesla’s first overseas factory.
According to data released by the China Passenger Car Association, Tesla sold 56,515 vehicles in China in February, up 208.5% year-on-year, including 33,315 vehicles exported to overseas markets and 23,200 vehicles delivered domestically.
Tesla is not the only automaker to adjust prices recently, due to tight supply, rising costs of raw materials and inflationary pressure. According to the incomplete statistics of Securities Daily, as of March 16, more than 20 new energy vehicle companies, including NIO, XPeng Motors, Hozon Auto and GAC AION all announced price increases, almost covering most mainstream models in the market, with price increases ranging from several thousand yuan to ten thousand yuan.